THIRD PARTY INSPECTION BY QUALITY SUPERVISION CONSULTANTS G

THIRD PARTY INSPECTION BY QUALITY SUPERVISION CONSULTANTS G. C. Tallur (Former Secretary, PWD) Advisor, IDS Cell Tuesday, July 12, 2005 12 -07 -2005 Advisor, IDS Cell 1

Third Party Inspection of Works, Goods & Equipments Current Status - Works Ø There Ø Ø are no specific provisions regarding inspection of works in the Karnataka PWD Code Clause 12(b), 12(c) & 13(a) of PWG 65 currently govern execution of works to the required quality Contractor is primarily responsible for quality Executive Engineer / Assistant Executive Engineer are engaged in multifarious activities, administrative, financial, technical & hence cannot bestow unstinted attention to quality of works. They are responsible for progress & also quality. This is a conflict of interest. 12 -07 -2005 Advisor, IDS Cell 2

Current Quality Control Set up Works Ø QC set up is inadequate Ø QC staff are, by & large, disgruntled or dissatisfied Ø QC staff function under officers in-charge of execution of works. Ø QC staff are drawn from the same organization & inter-transferable. Ø Poor quality works are numerous & result in poor return for investment. Ø Contractors do not engage any technical staff though required to do so. Ø In-house QC is hence in a poor shape. 12 -07 -2005 Advisor, IDS Cell 3

Current QC status - Goods SPD-now closed, did not have its own inspection wing. It depended on Departmental Government officers. Ø KPTCL specifies that materials during manufacture & thereafter are to be tested by the manufacturer / supplier in the presence of KPTCL engineer. Ø Both lack modern professional element. Ø While the present system of inspection for works / goods / equipment can be acceptable for small value works / goods, a better system is needed for larger ones. Ø 12 -07 -2005 Advisor, IDS Cell 4

Independent (Third Party) Inspection Agency Advantages: Ø They are professionally qualified Ø They have necessary experience. Ø They are independent Ø They are not responsible for targets, progress, payment etc & hence there is no clash of interest. Ø This will ensure value for money Ø This will check corruption Ø This will stop low quality work getting accepted & paid for as is likely to happen now. Ø G. O. No. FD 55 Pro. Cell 2004, dated 17 -02 -2005 providing for Third Party Inspection already issued. 12 -07 -2005 Advisor, IDS Cell 5

The Provisions of G. O No. FD 55 Pro. Cell 2004, dated 17 -02 -2005 Ø Third Party Inspectors (TPI) (Quality Supervision Consultants) (QSC) to be appointed to improve quality of works / goods / equipments. Ø TPI mandatory for all works contracts of estimated value > Rs. 2 crores & all goods / equipments contracts of value > Rs. 25 lakshs. Ø QSC to be appointed as per the G. O PWD 121 SO/FC 2003, dated 26 -09 -2003 for appointment of Consultants. 12 -07 -2005 Advisor, IDS Cell 6

Employment of QSC Ø Well defined TOR to be drafted to engage QSC Ø Detailed checklists to be completed by QSC to be prepared (with the assistance of experts if need be) to ensure satisfactory performance by QSC. Ø QSC can be engaged for one or more works / supply of goods / equipments or for a specified term for a Procurement Entity. Ø HOD / MDs of PSUs / Boards / Societies / Local Bodies to engage QSC & order their payment on satisfactory performance. Ø Expenditure on QSC to be charged to the relevant work / procurement estimates. 12 -07 -2005 Advisor, IDS Cell 7

QSC inspections Ø QSC to inspect works periodically Ø QSC to submit reports as per checklists to the Ø Ø Employer / copy to the Secretary / Managing Director QSC to inspect goods / equipments during manufacture / before dispatch / after receipt, assembly & commissioning. Engaging QSC does not absolve the primary responsibility of the Employers towards sound quality of works / goods / equipments. QSC are there to assist the Employer / purchaser in discharging their primary responsibilities. QSC not to be engaged where a specialized in-house QC organization exists or a separate Supervision Consultant has been already engaged. 8

KTPP Act & TPI Ø Applicable to all Procurement Entities as defined in Section 2(d) of Chapter-1 Ø This G. O about engaging TPI / QSC to be included in the special conditions of Contract of the Tender documents. Ø The Contents of this G. O will be incorporated in the Karnataka PWD Code & other manuals. 12 -07 -2005 Advisor, IDS Cell 9

12 -07 -2005 Advisor, IDS Cell 10